Gogo Clocks 21% Revenue Growth In Q3 Backed By Record AVANCE Equipment Shipments

Gogo Inc GOGO reported third-quarter FY22 revenue growth of 21% year-on-year to $105.3 million, beating the consensus of $101.9 million.
Service revenue grew 14% Y/Y to $75.3 million. Equipment revenue rose 43% Y/Y to $30.1 million.
Total ATG aircraft online increased 10% Y/Y to 6,777. The average monthly service revenue per ATG aircraft online (ARPU) was $3,376, up 3% Y/Y. Total AVANCE units online grew 38% Y/Y to 3,079.
Adjusted EBITDA rose 7% Y/Y to $43.7 million.
EPS of $0.15 was in-line with the consensus.
Gogo held $152.2 million in cash and equivalents and generated $27.7 million in operating cash flow.
"Gogo's record AVANCE equipment shipments in the third quarter underscore our ability to execute in a robust, underpenetrated Business Aviation market," said Oakleigh Thorne, Chairman, and CEO. "Looking ahead, the roll-out of commercial Gogo 5G services and our LEO-based Global Broadband offering will continue to elevate our performance and expand our addressable market."
Outlook: Gogo raised the total revenue forecast to $395 million - $405 million versus prior guidance at the high end of the range of $390 million - $400 million, above the consensus of $399.50 million.
Gogo reiterated its revenue growth forecast at a CAGR of 17% from 2021 through 2026, reflecting Global Broadband contribution starting in 2025.
Price Action: GOGO shares traded higher by 1.76% at $15.05 on the last check Thursday.
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